Starbucks has begun to see more widespread success in China by replicating one of their highly proven business models. By opening stores in close proximity to each other – a strategy the brand uses often in American neighbourhoods – the company has managed to attract more business than usual.
Similar to most areas of New York City or Los Angeles, one neighbourhood in Beijing is home to two Starbucks that sit only 500 meters apart. Both stores have their fair share of customers though. One is located in the ground floor of an office building, catering to a business-minded crowd, while the other attracts a younger, trendier bunch.
Putting their long used strategy into action, CEO Howard Schultz said that the company opened 206 new outlets and 111 franchise stores in China just last year. The numbers revealed that the confident move was also a smart one as revenue in their China and Asia Pacific market increased by 27.1 percent to USD917 million, according to Want China Times.
(Source: red luxury)